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  • “We are stopping our exchange. At 4 PM [IST] today, we will cancel unexecuted orders & credit your coins to your Zebpay wallet”¦” Zebpay on Twitter.
  • Zebpay cites difficulty in conducting business without bank account support in India.
  • Bitcoin price reacts with a slide from $6,790 to $6,632.

India’s cryptocurrency space remains in delicate state months after the Reserve Bank of India (RBI) banned banks from doing businesses with cryptocurrency based entities. The RBI has been taken to the Supreme Court over the ban but the case is yet to be ruled.

Meanwhile, one of the largest Bitcoin exchanges in the country has today hit the headlines after announcing that it was shutting down all services apart from the Zebpay wallet. Cryptocurrency exchanges are struggling to survive due to the lack of banking services. The announcement made via Twitter on Friday stated:

“We are stopping our exchange. At 4 PM [IST] today, we will cancel unexecuted orders & credit your coins to your Zebpay wallet. No new orders will be accepted. The Zebpay wallet will work even after the exchange stops.”

All trading activity will be closed on the exchange later today. However, the company has assured the users that their funds will be returned to them in full. Moreover, Zebpay will no longer be operating in the region due to the tough regulation status leading to the extreme “banking problems.” The exchange went ahead to say that lack of banking services has “crippled ability to transact business meaningfully.”

The exchanges in the region have been operating solely using Peer-to-Peer transaction platforms. This has helped them to support both deposits and withdrawals but the decreasing liquidity on Zebpay have warranted the shutdown.

Bitcoin price technical picture

Contrary to the bullish picture painted in an earlier published analysis, Bitcoin has dropped from the intraday highs of $6,790 below $6,700. The declines are still ongoing and Bitcoin buyers are yet to find balance and push for consolidation. BTC/USD is trading at $6,632 while heading south where all eyes are on $6,600. However, it is likely Bitcoin will reverse the trend above this level. Similarly, the fast stochastic oscillator is changing direction horizontally. The price is still above the moving averages on the hourly chart.

BTC/USD 1-hour chart